PEL: Scranton Needs More Than 12% Tax Hike

Map of Pennsylvania highlighting Lackawanna County

Map of Pennsylvania highlighting Lackawanna County (Photo credit: Wikipedia)

Scranton‘s state-designated recovery coordinator, Pennsylvania Economy League, has told city officials they need to raise property taxes next year higher than the 12 percent that the city budget for 2013 proposes. Exactly how much higher was not stated.

In a letter received Thursday, PEL Executive Director Gerald Cross notes that the city has not dedicated a tax millage toward paying for the city’s second unfunded debt package approved by a court this year, of $9.75 million. In that case, Judge Peter O’Brien, a senior visiting judge from Monroe County, on Oct. 31 ordered that a tax millage be dedicated to paying back this unfunded debt.

It was the same arrangement the city sought and received in January, when a different judge, Senior Monroe County Judge Jerome Cheslock, approved the city’s first unfunded debt, of $9.85 million, and ordered that this amount be paid back with a dedicated tax millage over 10 years.

The first unfunded debt package translated into the 12 percent tax hike in the proposed budget for next year, city officials have said.

Read more:  http://thetimes-tribune.com/news/pel-scranton-needs-more-than-12-tax-hike-1.1413187

State Extends Deadline For Scranton Recovery Plan After PEL Raises Concerns

Hours after receiving a “rejection” of its revised recovery plan by a state-appointed recovery coordinator, Scranton City Council on Thursday forged ahead with introducing the plan anyway.

The council voted 3-1 to introduce an ordinance to implement the revised plan that was agreed upon last Friday by Mayor Chris Doherty, council President Janet Evans and council finance chairman Frank Joyce.

The plan then was sent for review to the city’s Act 47 recovery coordinator, Pennsylvania Economy League, which also would have to OK the plan before it would take effect.

On Thursday, shortly before the council’s meeting, PEL issued a letter to the city detailing numerous concerns about the recovery plan, chiefly that much of its revenue sources that are alternatives to real estate taxes – such as a commuter tax and sales taxes and significantly increased voluntary donations from nonprofits – are not guaranteed to occur. PEL wants to the city to identify backup revenues sources should speculative revenue sources never materialize.

Read more: http://thetimes-tribune.com/news/state-extends-deadline-for-scranton-recovery-plan-after-pel-raises-concerns-1.1353735